Depositing of netcoin in your wallet you get a percentage of profit between 80 and 100%. The profit is daily?
Hey Chris,
To answer: If you have a good amount of netcoin, absolutely, 80% or 100% interest/earning is there!
As for "daily" interest/profit, kinda: When a Proof of Stake block is awarded, the annual interest rate is converted to a daily rate, and applied based on the age of the staked coins in days
To explain in more detail though about how Personal Interest Rate + Open Wallet Incentive work (and thus, to answer your "daily interest rate/profit question")
a) Now POW + POS HybridA big decision on the POS implementation was to help continue the success of NETCOIN, allow for fair usage, accessibility, and the ability to reward coin adopters and users. That being said, we did not want to implement the traditional POS (as recent security breaches and problems with malicious users not contributing to the network highlighted this fact). Thus, we made some exciting and revolutionary changes to the POS protocol that are now implemented in Netcoin, making it by far one of the safest POS coin available as it is less susceptible to very large volumes controlling the network.
Why the changes to POS?We liked the idea of substituting the 'sacrifice of electrical power and energy' with 'the sacrifice of accumulated coin age' to sign blocks and earn rewards. For one thing, it's more eco-friendly. For another, it provided a way to give back to NETCOIN users.
But the one argument against POS as a concept that really bothered us was this:
POS will help secure the network providing lots of wallets compete to secure the network.
The usual POS reward is reward_Per_Coin_Per_Day * number_of_coins_Staked * number_of_days_held
Nothing in that reward talks about securing the network while you hold the coins.
So, in theory, one could:
-obtain a large number of coins
-Put them in a paper wallet
-Forget about Netcoin for 5 years
-Import the private key into my wallet
-Start staking
-Receive 5 years worth of POS reward
For what? For helping to securing the network for a few hours in all that time. This, to us, seemed to be an oversight in the overall POS concept. Why should anyone bother trying to compete and leave their wallet running if you get the 5 years reward anyway?
Thus, the need to make some fundamental changes to the POS system.
b) Personal Interest Rate (PIR) + Open Wallet Incentive (OWI) OverviewOne of the big decision on the POS implementation is what interest rate to choose for staking rewards. As we discussed what to use, we realized that the notion of only providing a flat, fixed interest rate that stopped year after year was archaic. Not only did we want to provide an interest rate that was fair to all users and would benefit those who actively utilized NETCOIN, but we wanted to provide a long lasting and sliding scale interest rate that TRULY rewarded individuals based on the number of coins in their possession. With a sliding scale then, it is always better to obtain more NET.
We also wanted to encourage NETCOIN users to be active, participating in the coin and community. To do this, and to continue the stability and security of NETCOIN, we wanted to give users a reason to stake (or to either keep their wallets open, or open them regularly).
b1) Reasons for PIR + OWI Interest rate is a measure of risk and reward. In finance an Interest Rate is often called a 'Risk Rate'. The large holders are exposed to greater risk with the rises and falls of the price of crypto currency. Presently, this is much more than normal fiat currency.
Therefore, an individual with more NETCOIN will get a higher reward to reflect (and honor) the higher risk they are taking. Furthermore, every time the interest rate rises a little bit with every extra NETCOIN obtained creates a desire to obtain NET. This is a good thing for keeping the market active and encouraging users to 'stick' with NETCOIN for the long haul, and to discourage the use of the coin as a “pump-and-dump” coin. To prevent an uncontrollable increase in interest to further, we designed into the protocol from the start interest rates that change after 1 year and 2 years to close the gap between high and low holders. This reflects that fact that by that time the risks will be lower and more balanced.
What we developed is this:
b2) Open Wallet Incentive (OWI)Open Wallet Incentive (OWI) is a new algorithm designed by NETCOIN core team to both replace Proof-of-Work (PoW) and Proof-of-Stake-Velocity (PoSV) as the mechanism to verify transactions and create blocks and provide incentive to NETCOIN users to participate in staking. OWI continues to reward users for their ownership and activity of NETCOIN. Simply put, the more NETCOIN you have, and the more you keep in your wallet (and keep your wallet open and running), not only are you more likely to find a stake block and receive block rewards, but the more interest you earn based on the amount of coins in your wallet. However, what sets OWI apart is the ongoing reward (or interest rate) that’s applied. Rather than having a static reward that stops, ours continues to reward (that declines with time).
How it works:
- Users should stake once each month to earn highest possible rewards
This incentivises running full nodes to increase POS security
- The Coin Age gradually slows after 1 month with an aging half life of 90 days.
b3) Personal Interest Rate (PIR)Personal Interest Rate (PIR) is a new algorithm designed by NETCOIN to replace the static Annual Percentage Rates (APR). APR is the 'Annual' or yearly target interest rate. Other coins set a static, fixed APR (much like a savings account). However, a rate that increased for larger holders of the currency would encourage people to:
1) Want to obtain more NETCOIN (as they would be getting a higher “interest rate”) and
2) Promote smart consumerism (spending the currency could reduce one’s interest rate, thus providing a means for individuals to spend wisely).
Simply put: The more NET you get, the better the rewards.
How it works:
The number of NET you stake (or have in your open wallet) determines the Annual interest rate that is applied to the transaction for that reward. When a Proof of Stake block is awarded, the annual interest rate is converted to a daily rate, and applied based on the age of the staked coins in days. Stake reward increases in line with the value of the coins staked on a sliding scale using the following threshold:
Netcoin Annual Interest Rates It is a sliding scale between the values displayed below
NET Y1 Y2 Y3
0 10 20 20
1000 15 25 22
10000 20 30 24
100000 30 35 26
1000000 80 40 28
10000000 100 45 30
Year 1: Started August 2014
Year 2: Will start at approximately August 2015
Year 3: Will Start at approximately August 2016
These estimates depend on the speed of the blocks, which should average ~1 per minute.
Users who keep their wallets open more often (or stake regularly) to secure the network earn the quoted APR, while users who keep their wallet closed for months at a time and do not help to secure the network with POS staking will earn less than the quoted APR.
Hope that helps! A lot of this information was from one of our foundation devs (WHO) who did some great write ups on the netcoin forums!
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